Enron Corp. Buys a Canadian Paper Mill

Article excerpt

As SSCC denies any plans to sell Smurfit's last U.S. newsprint mill

Enron Corp. is acquiring a second newsprint mill, a Canadian operation owned by a Japanese papermaker. Meanwhile, the operator of a West Coast mill denied a London press report that its owner in Ireland planned its sale.

Enron Industrial Markets agreed to buy Daishowa Forest Products Ltd. mill near Quebec City from Japan's Daishowa Paper Manufacturing Co. Terms were not disclosed. Daishowa acquired the mill in 1988 and added a de-inking plant. Today, the mill operates four newsprint machines producing 387,000 metric tons per year (tpy) of newsprint and 83,000 tpy of directory paper, as well as a 45,000-tpy paperboard machine for anything from cartons to color board.

Half the de-inking plant's recovered paper is shipped from the United States and half from the Montreal area, said Daishowa Senior Vice President and General Manager Andre Sarasin. Newsprint and directory paper contains 45% to 50% recycled fiber, and the paperboard is almost 100% recycled fiber, Sarasin said.

Having offered financial hedges on pulp and paper for several years, Enron last September launched the Clickpaper Web site for buying and selling paper. In Canada, it invested in the Papier Masson newsprint mill. Last fall, it bought Media General's Garden State Paper Co., which runs a 100% recycled newsprint mill in Garfield, N.J.

In 1988, Media General sold another mill (using Garden State technology) to cement maker Giant Group Ltd. …